Air Freight Forwarder Skyways Air Services files DRHP for IPO

Delhi-based air freight forwarding and logistics company Skyways Air Services Limited has filed its draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). 

The IPO, with a face value of ₹10 each, is a mix of a fresh issue of up to 32.92 million equity shares and an offer for sale of up to 13.33 million equity shares by promoters and other selling shareholders.

The offer for sale consists of shareholders selling up to 7.12 million equity shares by Yashpal Sharma, up to 2.46 million by Tarun Sharma, up to 1.87 million equity shares by Himanshu Chhabra, and up to 1.87 million equity shares by Rohit Sehgal.

The proceeds from its fresh issuance are to the extent of Rs 216.79 crore for repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by the company and its subsidiary, “Forin Container Line Private Limited”; Rs 130 crore for funding incremental working capital requirements of the company; and general corporate purposes.

The company, in consultation with the book-running lead managers, may consider a pre-IPO placement aggregating to 6.25 million equity shares. The pre-IPO placement, if undertaken, shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced. 

The issue is being made through the book-building process, wherein not more than 50% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% and 35% of the net offer to non-institutional bidders and retail individual bidders, respectively.

Skyways Air Services Limited (SASL) was established in the year 1984 and began its operations as a Custom House Agent (CHA)—now known as a Custom Broker License holder—and has progressively expanded its service offerings over the years in response to evolving market requirements and international trade dynamics beyond air freight forwarding and custom broking service, evolving into a multi-modal logistics service provider.

The company's portfolio includes air freight forwarding, ocean freight forwarding, trucking, comprehensive warehousing solutions, technology-driven express cargo and parcel delivery service, and continued excellence in customs broking services, thereby offering an integrated logistics platform for a diverse range of clients.

It has been a long-standing participant in India’s air freight forwarding and logistics sector. The company is consistently ranked No. 1 “Air Freight Forwarder” in terms of AWB generation by World ACD for the last three calendar years. It is actively engaged in providing a comprehensive suite of services, including air freight forwarding, ocean freight forwarding, trucking, warehousing, custom broking, technology-driven express cargo and parcel delivery, and a wide range of Value-Added Services (VAS) with clientele across domestic and international markets.

The company maintains strategic alliances with a diverse range of international air freight carriers, enabling enhanced service capabilities and global reach, with performance-based agreements with several leading global airlines, including Saudi Cargo, Air India Cargo, Turkish Airlines, and Lufthansa.

The company maintains active affiliations with several globally recognized logistics and freight forwarding networks, including the World Cargo Alliance (WCA), Air & Ocean Partners (AOP), Combined Logistics Networks (CLN), Multi Group Logistics Network (MGLN), Global Freight Alliance (GFA), and the Transport Worldwide International Group (TWIG).

Its flagship products are SLS HIKE, an end-to-end logistics management platform, and SLS 100X, a dynamic booking engine. Its business operations are supported by a strategically established network of 15 branch offices located across India. Its technology subsidiary, sGate Tech Solutions, plays a pivotal role in this digital transformation by developing tailored software solutions that streamline logistics operations and deliver actionable insights for smarter, data-driven decision-making.

Skyways Air Services’ revenue from operations and profit after tax for fiscal year 2024 stood at ₹1,289.11 crore and ₹34.49 crore, respectively.

For the nine-month period ended December 31, 2024, revenue from operations and profit after tax stood at ₹1,637.22 crore and ₹36.84 crore, respectively.

Holani Consultants Private Limited, Shannon Advisors Private Limited, and Dolat Finserv Private Limited are the book-running lead managers, and Bigshare Services Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.